Real Estate Accounting
Tax and accounting built for real estate investors, agents and brokers, property managers, and homeowner associations across Garden City, Long Island, and beyond. We help you keep more of what your properties earn.
Real estate rewards the owners who plan their taxes.
Real estate is one of the most tax-advantaged investments available, but only when the accounting is handled with care. The same property can produce very different after-tax returns depending on how income is reported, how depreciation is claimed, and how the ownership is structured. JRH & Associates works with real estate clients throughout Long Island, New York City, and Florida, and we understand the rules that separate a good year from a great one.
Reviewed by James R. Hurley, CPA · June 2026
Rental income and Schedule E
If you own income property, your rents and expenses are reported on Schedule E. We make sure gross rents are reported correctly and that every legitimate deduction is captured, from mortgage interest, property taxes, and insurance to repairs, management fees, and travel to your properties. For owners with several units or buildings, getting the bookkeeping right across each property is what keeps the return accurate and audit-ready.
Depreciation and cost segregation
Depreciation is one of the most powerful tools in real estate. Residential rentals are written off over 27.5 years and commercial property over 39 years, but a cost segregation study can reclassify parts of a building into much shorter recovery periods. That pulls deductions forward and can sharply reduce taxable income in the early years of ownership. We help you decide whether a study is worth it for a given property and make sure the schedule is applied correctly.
1031 exchanges and capital gains
A 1031 like-kind exchange lets you defer capital gains tax when you sell an investment property and reinvest in another, keeping more capital working for you. The deadlines are tight and the mechanics are unforgiving, so the tax planning has to be in place before you sell. We coordinate the exchange so the deferral holds and your basis is tracked correctly into the replacement property.
Passive activity rules and entity structuring
Rental real estate is generally a passive activity, which limits how losses can be used, with meaningful exceptions for active participants and qualifying real estate professionals. We evaluate where you stand and plan accordingly. We also help you choose how to hold your properties, whether through one LLC, a separate entity per property, or a holding structure above them, balancing liability protection, tax treatment, and day-to-day simplicity.
Agents, brokers, and self-employment tax
Real estate agents and brokers are usually self-employed, which means commission income carries self-employment tax and the responsibility for quarterly estimated payments. We help you maximize business deductions for vehicle use, marketing, licensing, and a home office, plan for estimates so April is never a shock, and evaluate whether an S-Corp election could reduce your self-employment tax as your commissions grow. Explore our full range of services or see how we work with construction businesses, the trades and home services, and other industries.
Every side of the real estate business.
Investors & Landlords
Owners of residential and commercial rental property, from a single unit to a growing portfolio.
Agents & Brokers
Commission-based professionals who need self-employment tax planning and strong deduction strategy.
Property Managers
Management companies handling rents, owner statements, and trust funds across many properties.
CIRAs & HOAs
Common interest realty associations and homeowner associations with their own reporting and tax filing needs.
"Real estate is one of the few investments where the tax code is genuinely on your side, but only if you use it. Depreciation, a well-timed 1031 exchange, and the right entity structure can change the math on a property dramatically. The owners who do best are the ones who plan before they buy and before they sell, not after."
James R. Hurley, CPA Founder & President, JRH & Associates Common real estate tax questions.
Rental income from residential and commercial property is reported on Schedule E of your individual return. You report gross rents received and then deduct ordinary and necessary expenses such as mortgage interest, property taxes, insurance, repairs, management fees, and depreciation. The net result flows to your return. We make sure every legitimate expense is captured and that the income is reported correctly across each property you own.
Depreciation lets you deduct the cost of an income property over time. Residential rentals are depreciated over 27.5 years and commercial property over 39 years. A cost segregation study breaks the building into shorter-life components, such as fixtures, flooring, and land improvements, that can be depreciated over 5, 7, or 15 years. That accelerates deductions into the early years of ownership and can significantly reduce taxable income up front. We help you decide whether a study makes financial sense for your property.
A 1031 exchange, named for that section of the tax code, lets you defer capital gains tax when you sell an investment property and reinvest the proceeds into a like-kind replacement property. The rules are strict: you generally have 45 days to identify replacement property and 180 days to close, and the funds must be held by a qualified intermediary. Done correctly, a 1031 exchange lets you keep more capital working in your portfolio. We coordinate the tax side closely so the deferral holds up.
Rental real estate is generally treated as a passive activity, which means losses can usually only offset passive income. There are important exceptions, including the allowance for active participants and the real estate professional status, which can let qualifying taxpayers deduct losses against other income. These rules are nuanced and the stakes are high, so we evaluate where you stand and structure your activity to make the most of the rules that apply to you.
Many investors hold property in LLCs for liability protection, sometimes with a separate entity per property and a holding company above them. The right structure depends on your goals, financing, number of properties, and estate plans. We help you weigh liability protection, tax treatment, and administrative simplicity, then set up a structure that fits and revisit it as your portfolio grows.
Make your real estate work harder.
Schedule a free consultation and we will review your properties, your structure, and the strategies that can lower what you owe.